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Mar 24, 2023
Osterweis Strategic Income Fund Named Best Multi-Sector Income Fund (3-year category) in the 2023 Refinitiv Lipper Fund Awards
Osterweis Capital Management's Strategic Income Fund (OSTIX) has been named a 2023 Refinitiv Lipper U.S. Fund Awards Winner as the Best Multi-Sector Income Fund Over Three Years.
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Blog
New
Mar 14, 2023
Sustainable Investing: Opportunistically Managing Risk
Robust risk management is essential for fixed income investors. In his latest commentary, Marcus Moore explains why our sustainable investing team considers ESG factors as material business risks, similar to the traditional risks they also analyze.
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News
New
Mar 10, 2023
Bloomberg: "A Top Bond Manager Says Fed Would Be Wrong to Boost Hike Pace"
In a recent interview with Bloomberg News, Eddy Vataru, lead portfolio manager for the Osterweis Total Return Fund, argues that the Fed should not accelerate the pace of its tightening program, as it would signal the central bank is losing control in its fight against inflation.
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Blog
Feb 24, 2023
Small Cap Growth Investing Across Market Cycles
Markets are unpredictable, which is one of many reasons it is difficult to consistently deliver alpha over long periods. In their latest commentary, our small cap growth team explains why their approach to managing the trade-off between risk and reward gives them the opportunity to outperform across market cycles.
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Blog
Feb 15, 2023
Unexpected Risks and Opportunities from the Inverted Yield Curve
Many investors have attempted to capitalize on the inverted yield curve by purchasing long-term Treasuries (assuming continued declines at the long end will cause their bonds to appreciate). In his latest commentary, Venk Reddy, CIO of our Sustainable Credit Strategies, explains why he feels this approach is materially riskier than investing in short duration fixed income.
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Commentary
Feb 3, 2023
2022 vs. 2023: Fundamentally Different Years
If the past few years have taught us anything, it is that markets are tough to predict. We think 2023 will be no exception, so we are approaching the year with a mix of humility and patience while we continue focusing on fundamental investing.
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Video
Jan 30, 2023
January 26 Webinar Replay - Osterweis Fund and Osterweis Growth & Income Fund Q4 Update
If you were unable to join our quarterly webinar, watch the replay to hear updates on the Osterweis Fund and Osterweis Growth & Income Fund.
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Blog
Jan 27, 2023
The Elephant in the Room
The current debt ceiling debate in Congress is a great reminder that investors should always prepare for the unexpected and invest in companies that are durable enough to withstand a range of economic scenarios.
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Podcast
Jan 27, 2023
Orion's Weighing Machine Podcast: Interview with Venk Reddy
Venk Reddy was featured in a recent edition of Orion’s "The Weighing Machine" podcast. During this interesting podcast, Venk discussed what sustainable investing means, how sustainable credit differs from green bonds, and what catalysts could make sustainable investments a hit.
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Video
Jan 20, 2023
January 5 Webinar Replay - Welcome Back, Income.
In his latest webinar, Venk Reddy, CIO of our Sustainable Credit Strategies, explains that the Fed’s battle against inflation is likely to last longer than the market anticipates, which should keep rates higher over the near-to-medium term, creating attractive opportunities for investors seeking income.
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Video
Jan 19, 2023
January 12 Webinar Replay - Osterweis Strategic Income Fund Q4 Update
If you were unable to join our quarterly webinar, watch the replay to hear updates on the Osterweis Strategic Income Fund.
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Outlook
Jan 12, 2023
First Quarter Strategic Income Outlook
2022 was a difficult year for bond investors, but the combination of high inflation and tighter Fed policy should keep yields elevated, creating materially stronger fixed income returns in the new year.
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Outlook
Jan 11, 2023
First Quarter Equity Outlook
In 2022, inflation and interest rates both rose substantially, creating the near-term potential for a recession. In the new year, we think investors should focus on companies that are well-positioned for an economic slowdown as well as continued price increases.
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Blog
Jan 10, 2023
Things Are Getting Sticky. Prices Always Have Been.
Although inflation appears to have peaked, historical data suggests that prices are unlikely to reverse themselves, which could lead to an extended period of wage inflation. For fixed income investors, the silver lining is that the Fed may be reluctant to lower rates anytime soon, which should translate into higher bond yields.
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Outlook
Jan 5, 2023
First Quarter Total Return Outlook
2022 was a rough year for fixed income, but we anticipate better days ahead as the Fed will likely keep rates elevated in its ongoing battle against inflation.
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Video
Dec 21, 2022
Replay - Taking the Long View: Why Inflation Today Could Boost Bonds Tomorrow
If you were unable to join the Total Return team for their recent webinar, you can watch a replay to hear why they think today's inflationary headwinds should become tailwinds for fixed income investors, as yields are likely to remain elevated across the bond market.
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Blog
Dec 19, 2022
Quiet Quitting? Quiet Firing? More Like Quiet Retiring
Structurally tight labor markets are providing support for tighter monetary policy, but the Fed may be fighting an uphill battle. A post-pandemic labor shortage is one of the biggest challenges in the struggle against persistent inflation, made worse by baby boomers retiring, as noted by Fed Chair Jay Powell in his remarks on November 30, 2022. If this retirement ripple becomes a wave, inflation may stay higher for longer, driving up yields and creating the most favorable fixed income investment environment in decades.
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Blog
Nov 18, 2022
Back to the Future: Traveling in Time to Navigate Today’s Markets
We believe the market is currently undergoing a substantial paradigm shift that could impact bond investors for years to come. The end result: We may be entering a golden age of income, reminiscent of a period in the distant past when investors focused on fundamentals and clipped coupons rather than prioritizing short-term price appreciation.
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Video
Nov 3, 2022
Replay - ESG Isn't What You Think It Is
Venk Reddy, CIO of Sustainable Credit, and Marcus Moore, Assistant Portfolio Manager, provided a behind-the-scenes look at how sustainability factors impact creditworthiness and how you, as a fixed income investor, can make a difference with your capital.
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Video
Nov 1, 2022
Venk Reddy: Is ESG a strategy?
In this video, Venk Reddy, CIO of Sustainable Credit, explains that ESG is not a strategy, but rather it is a framework for evaluating risks that have historically been ignored by traditional fundamental credit investors.
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Video
Oct 27, 2022
Venk Reddy: How do you engage with management teams?
In this video, Venk Reddy, CIO of Sustainable Credit, explains the differences between how ESG fixed income managers and equity managers engage with their portfolio companies.
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Outlook
Oct 21, 2022
Fourth Quarter Equity Outlook
Investors today probably feel a bit like the joker and the thief from Dylan’s classic, “All Along the Watchtower” – there’s too much confusion, they can’t get no relief. But our Core Equity team believes there is a way outta here – investing in dominant companies that pay growing dividends.
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Outlook
Oct 18, 2022
Fourth Quarter Total Return Outlook
The Fed remains singularly focused on containing inflation but has made little headway so far. We anticipate the tightening cycle will continue, which will keep downward pressure on risk assets.
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Outlook
Oct 11, 2022
Fourth Quarter Strategic Income Outlook
2022 has hit investors with an unprecedented 1-2 punch of sharply negative returns in both the equity and fixed income markets, but our Strategic Income team feels the selloff has created attractive opportunities in high yield bonds.
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Video
Oct 10, 2022
Venk Reddy: How do you look at ESG in Fixed Income?
In this video, Venk Reddy, CIO of Sustainable Credit, explains how the team views ESG factors as risks, similar to other business risks, and that considering them is key to delivering a portfolio that meets their fundamental mandate.
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News
Oct 7, 2022
Osterweis to Include ESG-Integrated Fixed Income Strategies in Product Suite
Osterweis Capital Management announced today that its fund family has expanded to include two sustainable bond funds. The Osterweis Short Duration Credit Fund (ZEOIX) and the Osterweis Sustainable Credit Fund (ZSRIX) will continue to be managed by portfolio managers Venk Reddy and Marcus Moore.
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Blog
Sep 20, 2022
Dividend Growth Stocks and High Yield Bonds: An Innovative Approach to Generating Investment Income
Generating investment income is challenging, especially in the low-yield environment we have been living with for the past decade. We believe that combining dividend growth stocks with an allocation to shorter-duration non-investment grade bonds is an effective solution.
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Blog
Sep 7, 2022
20 Years of Common Sense Investing: Our Top 5 Principles
We have always believed that common sense is the key to successful investing. Since launching our Strategic Income Fund two decades ago, our straightforward, flexible approach has allowed us to navigate all types of markets and consistently deliver strong risk-adjusted returns over time.
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Podcast
Aug 30, 2022
Money Life with Chuck Jaffe: Interview with Eddy Vataru
Listen to Eddy’s August 25, 2022 interview on the “Money Life with Chuck Jaffe” podcast to hear his thoughts on the Fed's response to inflation and if there is likely to be a soft landing.
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Blog
Aug 18, 2022
Navigating Short-Term Dislocation Through Long-Term Thinking
Thanks to general concerns about shorter-term bonds and fears of a looming recession, many shorter duration securities are currently yielding more than longer duration securities. According to Venk Reddy, CIO for our Sustainable Credit Strategies, to properly capitalize on this unusual situation, investors must distinguish between strong credits that are discounted due to decreased market sentiment versus those with deteriorating fundamentals.
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Blog
Aug 2, 2022
The Fed Has a Third Mandate, and the Market Has a New Imaginary Friend
Much has been made of the market’s relationship with the Fed in recent months, but what has only been mentioned in passing is the impact on market psychology of past Fed actions. When paired with a Fed that is hyperaware of those market psychologies, we find ourselves seeing an interesting dynamic develop today as the Fed battles inflation on one hand and the risk of a recession on the other.
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Blog
Jul 20, 2022
Fundamentally Challenged or Fundamentally Cheap? Bargain Hunting in a Down Market
2022 has been a rough year for fixed income investors (among others), as most bonds have experienced double digit losses. Perhaps the only silver lining to this situation is that many securities have declined in price even though the issuer’s credit quality has not materially changed, which has created some excellent buying opportunities for active managers like us.
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Outlook
Jul 19, 2022
Third Quarter Equity Outlook
Equity markets have struggled so far in 2022, but in our view the declines are largely due to “The Great Normalization” – the unwinding of the Covid economy that was defined by excess liquidity, unusually high demand, and extremely low interest rates.
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Blog
Jul 15, 2022
Short-Term Investing with a Long-Term Perspective
Ironically, the short-term bond market works best for patient investors with longer-term horizons, as many participants have high liquidity needs and will sell quality bonds at a discount in order to raise cash quickly. This creates buying opportunities for investors like us, as we are always happy to hold a strong credit to maturity, especially if we can purchase it below its fair market value.
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Outlook
Jul 14, 2022
Third Quarter Total Return Outlook
Despite the Fed’s aggressive tightening policy, we think inflation still has a ways to run, though we remain cautiously optimistic about the economy.
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Outlook
Jul 12, 2022
Third Quarter Strategic Income Outlook
With investors wondering whether we are finally through the worst of the selloff, our latest Strategic Income outlook tries to answer the question, “Are we there yet?”
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Blog
Jul 12, 2022
Inflation vs. Stagflation: A Distinction Without a Difference?
The stagflation scenario predicted as imminent by some economists never quite came to pass… at least not yet. Meanwhile, the current state of inflation appears to be the results of a series of seemingly one-off scenarios. However, if one looks closer, patterns begin to emerge.
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News
May 17, 2022
Kiplinger: The Osterweis Strategic Income Fund is Discussed in this Field Guide to Income Investment Opportunities
This Kiplinger article quotes Carl Kaufman, who describes the Osterweis Strategic Income Fund's (OSTIX) tendency to perform well in down markets.
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News
May 17, 2022
MarketWatch: What’s Next for the Stock Market as Investors Grapple with Fed Near ‘Peak Hawkishness’
The portfolio managers for the Osterweis Total Return Fund (OSTRX) were recently quoted in a MarketWatch article discussing the Fed’s current policy predicament and potential strategies for managing inflation.
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Outlook
Apr 21, 2022
Second Quarter Equity Outlook
Concerns about the Ukraine war, inflation, and the Fed were top of mind last quarter, but a lesser appreciated long-tern headwind is the de-globalization of the labor force, which could have profound effects on the economy.
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News
Apr 19, 2022
Zeo Team Joins Osterweis
We are excited to announce that on May 1, 2022, Zeo Capital Advisors' six employees became part of the Osterweis team. Their additional expertise allows us to expand our fixed income strategies and product suite into ESG-focused short duration and sustainable high yield.
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Outlook
Apr 14, 2022
Second Quarter Total Return Outlook
Russia’s invasion of Ukraine has exacerbated inflation, which was already rising. The big questions now are how far will the Fed be willing to go to slow inflation, and how will the market react as rates increase?
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News
Apr 14, 2022
AdvisorIntelligence Annual Fund Review
Read AdvisorIntelligence's annual review of the Osterweis Strategic Income Fund, where it continues to rate the fund as “Recommended” in its Absolute-Return-Oriented bond fund category.
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Outlook
Apr 12, 2022
Second Quarter Strategic Income Outlook
The war in Ukraine has further complicated the investment backdrop, and fears of a recession are rising now that the U.S. yield curve has inverted. Given so much uncertainty, we are focusing on what we can control and maintaining a defensive posture.
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News
Mar 25, 2022
Morningstar: Bond Investors Facing Worst Losses in Years
Eddy Vataru, Lead Portfolio Manager for the Total Return Fund, was quoted in a Morningstar.com article about how rates are affecting the bond market.
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Blog
Mar 14, 2022
Strategic Income Fund: Built to Withstand Challenging Markets
Bonds have started slowly in 2022 due to persistent inflation, a looming Fed tightening cycle, and the Russia/Ukraine conflict. We believe the Osterweis Strategic Income Fund is well-positioned to address these challenges, as its flexible mandate and defensive approach help to protect against rising rates and market volatility.
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Blog
Mar 8, 2022
Market Perspectives: Our Latest Thoughts on Ukraine
The Ukraine conflict has escalated rapidly, creating a massive humanitarian crisis and increasing volatility across financial markets. In this piece we review the major economic implications of the war and discuss the steps we are taking to manage the impact on portfolios.
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Podcast
Mar 1, 2022
Money Life with Chuck Jaffe: Interview with Eddy Vataru
Listen to Eddy’s February 23, 2022 interview on the “Money Life with Chuck Jaffe” podcast to hear his thoughts on inflation and potential fed fund hikes.
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Blog
Jan 5, 2022
In Search of Upside: Finding Opportunities in Small Cap Growth
Small cap growth stocks lagged for most of 2021 as the market simultaneously dealt with the pandemic, inflation, and tightening Fed policy. Given these challenges, we have been focusing on high quality companies trading at attractive valuations, and we have also been looking at non-technology businesses that are embracing digitization.
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News
Dec 14, 2021
Mutual Fund Observer: Osterweis Growth & Income Fund Profile
Mutual Fund Observer recently published a profile on the Osterweis Growth & Income Fund (OSTVX). The profile highlights why MFO believes the fund "warrants a place on any grown-up investor's due-diligence shortlist."
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Blog
Dec 13, 2021
Press Release: Osterweis Emerging Opportunity Fund Receives Five-Star Five-Year Morningstar Rating
The fund is rated 5 stars in the Small Cap Growth category for the 5-Year, 3-Year, & Overall Periods. As of November 30, 2021, the fund was rated against 507 small cap growth funds in the 5-year category and 574 funds in the 3-year and overall categories, based on total returns.
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Blog
Dec 6, 2021
Total Return Perspectives: November 2021
Interest rates were mixed in November, as shorter maturity yields continued to rise while longer maturity yields fell further. The continued flattening of the yield curve reflects the market’s expectation that the Fed will be more aggressive in their tapering of official purchases and potentially raise the fed funds target rate more quickly and aggressively than previously thought.
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Video
Nov 17, 2021
Portfolio Manager Nael Fakhry Discusses the Supply Chain and Onshoring Trends
In this brief video, Nael Fakhry, Portfolio Manager at Osterweis, discusses supply chain reshoring, its effects on just-in-time inventory, and how some of our holdings may be beneficiaries of this trend.
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News
Nov 8, 2021
MarketWatch: Easy money in junk debt markets helps borrowers, but are investors risking too much in a reach for yield?
In this MarketWatch article, Craig Manchuck provides his perspectives on the high yield market.
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Blog
Nov 5, 2021
Total Return Perspectives: October 2021
Interest rates were mixed in October, as shorter maturity yields rose while longer maturity yields fell. The dramatic flattening in the yield curve reflects the market expectation that the Fed will begin tapering its bond purchase program imminently and has pulled forward expectations for rate hikes once the taper is completed.
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Podcast
Oct 20, 2021
Orion's Weighing Machine Podcast: Interview with Carl Kaufman
Carl Kaufman was featured a recent edition of Orion’s "The Weighing Machine" podcast. During the podcast, Carl discussed how he got into the business and the strategy behind the Strategic Income Fund.
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Blog
Oct 6, 2021
Total Return Perspectives: September 2021
U.S. Treasury yields continued to rise during September as the Federal Reserve prepared markets for an eventual tapering of its quantitative easing program and inflation data remained elevated. Corporate bond spreads were resilient despite the rise in equity volatility.
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Blog
Sep 30, 2021
Is the Fed Ignoring Its Own Inflation Data?
The Fed continues to assert that elevated inflation is largely due to “transitory factors,” but the Underlying Inflation Gauge, which is published by their own New York branch, tells a different story. To understand where inflation is heading, we advise investors to pay close attention to UIG data, even it if the Fed doesn’t.
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Blog
Sep 7, 2021
Total Return Perspectives: August 2021
U.S. Treasuries ended their 4-month streak of positive returns and falling yields in August. Intermediate maturity yields rose more than shorter and longer maturities, as the market began to see through the impact of the Delta variant and focus more on the Federal Reserve’s plan to scale back their bond buying program.
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Blog
Aug 5, 2021
Total Return Perspectives: July 2021
Longer term Treasury yields fell for a fourth consecutive month in July, as concerns around the resurgence of coronavirus weighed on forecasts for continued economic growth. Agency MBS underperformed investment grade corporates and Treasuries. While some inflation metrics set generational highs, and other economic data indicated a continued recovery, investors were focused on the potential impact of viral spread.
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Blog
Jul 7, 2021
Total Return Perspectives: June 2021
Following the June Federal Open Market Committee (FOMC) meeting, the Treasury curve flattened as the market reacted to a more aggressive hiking schedule than previously expected. Risk continued to perform well as investment grade (IG) corporates outperformed again and tightened through levels not seen since 2018. Economic data continues to improve showing the reopening remains on track, but investors remain focused on elevated levels of inflation.
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News
Jun 30, 2021
Press Release: Fund Name Change and Management Fee Reductions
Read our latest press release for details on the change of the Strategic Investment Fund's name to Growth & Income Fund, as well as management fee reductions.
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Blog
Jun 29, 2021
Investment Grade Credit Midyear Report: A Challenging First Half, but Opportunities Remain
Rising interest rates generated negative year-to-date returns for investment grade bonds in 2021, but the second half of the year looks more promising. We believe the combination of reduced supply and strong demand will create attractive opportunities, and we are constructive on corporate credit and asset backed securities (ABS).
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Podcast
Jun 25, 2021
Deconstructing Alpha: Interview with Carl Kaufman
Listen to a recent interview with Carl Kaufman on the "Deconstructing Alpha" podcast, where they discuss the history and active management of the Strategic Income Fund, as well as investing in the current low interest rate environment.
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Podcast
Jun 23, 2021
Money Life with Chuck Jaffe: Interview with Eddy Vataru
Listen to Eddy’s interview on the “Money Life with Chuck Jaffe” podcast to hear his thoughts on inflation in the current market environment and how it's different from the financial crisis a decade ago.
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Blog
Jun 18, 2021
Why Secular Growth Matters, and How We Find It
Growth stocks have lagged cyclicals so far in 2021, but we remain steadfast in our belief that secular growth is the key to generating long-term returns. In this piece, we discuss how we find attractive opportunities in the small cap universe.
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Video
Jun 16, 2021
Webinar Replay - Assessing Inflation Risk in a Post-Pandemic Economy
If you were unable to join Eddy Vataru’s webinar on Assessing Inflation Risk in a Post-Pandemic Economy, you can watch a replay to hear why he feels the risk of sustained inflation is higher now than at any point in recent memory.
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News
Jun 11, 2021
MarketWatch: Is inflation eating up all the interest you’re earning on 10-year Treasury notes?
In this MarketWatch article, Eddy Vataru, CIO-Total Return, discusses his thoughts on inflation.
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Blog
Jun 8, 2021
Total Return Perspectives: May 2021
Treasury yields fell again in May and credit spreads approached recent tights as the virus continued to recede, allowing the reopening of the economy to progress. Economic data was noisy this month, largely due to base effects, but confirms the ongoing trend of renewed growth and signs of inflation.
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Blog
Jun 3, 2021
Inflation in 2021: Why It Could Be Different This Time
Inflation has been top of mind for investors throughout 2021. The question going forward is whether recent price increases will be transitory or persistent. In our view, the risk of sustained inflation is higher now than at any point in recent memory.
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Blog
May 6, 2021
Total Return Perspectives: April 2021
Treasury yields fell in April, in a modest retracement of the first quarter selloff. While virus outbreaks persist regionally, the general trajectory of news has been positive as vaccine dissemination continues. Economic data demonstrated continued growth as the economy emerges from last year’s pandemic depths.
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Blog
Apr 6, 2021
Total Return Perspectives: March 2021
Treasury yields marched higher in March, with the move again concentrated in longer maturities. While there have been some virus-related lockdowns (mostly in Europe) the general trajectory of news has been positive, with vaccine dissemination accelerating. Economic data was broadly positive. The White House has proposed a sweeping fiscal stimulus package funded by tax increases for corporations and individuals with high incomes.
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Blog
Mar 31, 2021
Price Makers, Share Gainers, and Compounding Machines: Three Quality Business Models
Defining a quality business is easier said than done. We have found that the highest quality businesses either consistently exercise pricing power while maintaining market share or consistently grow market share by undercutting incumbents. A choice few companies we call “compounding machines” can both raise price and increase market share.
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Blog
Mar 11, 2021
In a Speculative Market, Focus on Fundamentals
As investors have become more optimistic about the U.S. economy, speculative activity has become a progressively bigger driver of returns, particularly in small and micro-cap stocks. While we always welcome an equity rally, in volatile environments like this, we believe it is more critical than ever to focus on fundamentals and invest only in the highest quality firms.
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Blog
Mar 4, 2021
Total Return Perspectives: February 2021
Treasury yields rocketed higher in February, with the move again concentrated in longer maturities. Volatility spiked as liquidity dried up in the Treasury market, especially after a very weak 7-year auction that briefly pushed 10-year Treasury yields to 1.60%. The news flow was largely the same direction: an improving economy, increased vaccine rollout with deaths and hospitalizations turning sharply lower, and a continued march toward a substantial fiscal stimulus plan.
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Blog
Feb 3, 2021
Total Return Perspectives: January 2021
Treasury yields continued to march higher in January, with the move again concentrated in longer maturities. Mortgage spreads tightened slightly, while corporate bond spreads were mostly mixed. The market remains stuck between the push/pull of the prospect for greater fiscal stimulus and ongoing vaccine rollout versus continued lockdowns and the greatest one-month mortality rate since the pandemic began nearly a year ago.
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Jan 6, 2021
2021 IG Outlook: Despite Headwinds, a Path Forward Exists
As the new year begins, the investment grade (IG) market faces multiple challenges, including a recovering economy, low yields, tight spreads, and record high duration. At the same time, market technicals remain favorable, fundamentals are improving, and there are attractive sectors in the index. Overall, we are modestly bullish about 2021 and feel there are compelling opportunities for those who know where to look.
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Blog
Jan 6, 2021
Total Return Perspectives: December 2020
In December Treasury yields mostly edged higher, concentrated in longer maturities. Corporate bond spreads narrowed, as investors maintained their appetite for risk assets. While we are closer to widespread dissemination of a vaccine against Covid-19, recent virus data and new lockdowns present a more somber view as the year begins.
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Blog
Dec 28, 2020
Back to (the New) Normal: Five Secular Growth Trends for 2021
The coronavirus pandemic is a once-in-a-lifetime event that transformed society and the economy almost overnight. We believe some of the most significant changes are likely here to stay, and we are focusing our investments on the secular growth trends we expect to strengthen as life returns to normal.
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Video
Dec 17, 2020
TD Ameritrade: Eddy Vataru Interview
Watch TD Ameritrade's interview with Eddy Vataru, lead Portfolio Manager for the total return fixed income strategy, who discusses his thoughts on how the Federal Reserve is managing interest rates in the current market environment.
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Blog
Dec 7, 2020
The Case for Waste: Finding Growth in Garbage
Although investors don’t normally think about trash when they’re looking for growth stocks, we believe the solid waste industry is well-positioned to outperform. In our view, the combination of high barriers to entry, stable demand, and opportunities for consolidation should provide reliable revenue growth for the foreseeable future.
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News
Dec 4, 2020
Morningstar Magazine: Osterweis Emerging Opportunity Fund Profile
Morningstar Magazine recently published a profile on Jim Callinan, portfolio manager for the Osterweis Emerging Opportunity Fund (OSTGX). The profile delves into Jim's wealth of experience and how he's built an effective team here at Osterweis.
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Blog
Dec 3, 2020
Total Return Perspectives: November 2020
In November Treasury yields fell slightly, mostly concentrated in longer maturities. Corporate bond spreads narrowed sharply, paced by strong appetite for risk assets that began after election day. We also appear to be substantially closer to dissemination of a vaccine against Covid-19.
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Blog
Nov 5, 2020
Total Return Perspectives: October 2020
In October Treasuries resumed a steady rise in yields that began in August. Corporate and mortgage bond spreads narrowed, despite weakness in risk sentiment seen in equity markets. Although the election remains undecided, the bond market has rallied as investors are expecting a divided Congress – implying a smaller fiscal stimulus package and continued monetary support from the Fed.
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Podcast
Oct 27, 2020
Money Life with Chuck Jaffe: Interview with Jim Callinan
Listen to Emerging Opportunity Fund Portfolio Manager Jim Callinan's recent interview on the podcast “Money Life with Chuck Jaffe," where he discusses the answer to the question: "What is the right opportunity and what does it look like?"
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News
Oct 16, 2020
Value Investor Insight: Osterweis Emerging Opportunity Fund Interview
In this article the Osterweis Emerging Opportunity Fund (OSTGX) team discusses how valuation factors into their growth strategy.
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Blog
Oct 6, 2020
Osterweis Total Return Fund Ranked #1 in Nontraditional Bond Category by US News & World Report
The Osterweis Total Return Fund was ranked against 311 funds in the nontraditional bond category, based on an equal weighting of the overall ratings provided by US News and World Report data sources as of August 31, 2020.
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Blog
Oct 2, 2020
Total Return Perspectives: September 2020
Treasuries were little changed in a month that saw yields confined to a very narrow range. Corporate and mortgage bond spreads widened slightly, consistent with the slight decline in equities and the uptick in equity volatility.
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News
Sep 25, 2020
Mutual Fund Observer: Osterweis Emerging Opportunity Fund Profile
Mutual Fund Observer recently published a profile on the Osterweis Emerging Opportunity Fund (OSTGX) and its portfolio manager, Jim Callinan. The profile delves into the fund and why they recommend it for "sustained, risk-conscious excellence."
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Blog
Sep 23, 2020
Is the Bond Market as Disconnected from Reality as the Stock Market?
Bob Veres of Insider’s Forum recently moderated a panel discussion featuring Eddy Vataru that explored the disconnect between the strength of the bond market and the weakness in the economy. Eddy explained that the situation is largely due to the Fed's monumental stimulus program, and he suggested strategies for investing in a low rate environment.
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Blog
Sep 23, 2020
Catching the Wave: Why Secular Growth Matters
In our view, the specific market dynamics that influence a company's sales growth prospects have a greater impact on equity returns than the overall direction of the economy.
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Video
Sep 14, 2020
Bloomberg TV: John Sheehan Interview
Watch Bloomberg TV's interview with John Sheehan, Portfolio Manager for the total return fixed income strategy, who discusses opportunities in investment grade bonds and provides an overview of the current market. John's segment begins at 16:25.
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Video
Sep 14, 2020
Fixed Income Investing in a Low Rate Environment with Carl Kaufman & Eddy Vataru
In this video, Carl Kaufman, Lead Portfolio Manager for the Strategic Income Fund and Eddy Vataru, Lead Portfolio Manager for the Total Return Fund, share their thoughts on managing fixed income exposure and risks in a low rate environment.
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Blog
Sep 3, 2020
Total Return Perspectives: August 2020
Treasuries took a breather in August as inflation fears gripped the market. Corporate and mortgage bond spreads held firm despite the lack of agreement on continued fiscal stimulus.
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Video
Sep 3, 2020
TD Ameritrade: Eddy Vataru Interview on the Fed Update
Watch TD Ameritrade's interview with Eddy Vataru, lead Portfolio Manager for the total return fixed income strategy, who discusses his thoughts on the Federal Reserve's recent announcement about its view on inflation.
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Blog
Sep 1, 2020
Investment Grade Credit Update: An Exceptionally Eventful Year That Has Created Opportunities
The investment grade fixed income market has been unusually active in 2020. Initial concerns about Covid-19 triggered a sharp selloff, but sentiment abruptly reversed when the Fed announced plans to purchase corporate bonds. Spreads have nearly returned to their pre-pandemic levels, but not all sectors have recovered equally, creating interesting opportunities for savvy investors.
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Video
Aug 18, 2020
TD Ameritrade: Eddy Vataru Interview
Watch TD Ameritrade's interview with Eddy Vataru, lead Portfolio Manager for the total return fixed income strategy, who discusses his thoughts on the economic recovery and his outlook.
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Blog
Aug 14, 2020
A Bright Future for Renewables: Lower Costs and Rising Demand
Following decades of investment and cost reduction, electricity from renewable energy should be cheaper than most existing fossil- and nuclear-fueled electricity within the next three-to-five years. We believe selectively investing in operators with scale and cost advantages in this sector should be rewarding given the increasing demand for clean energy.
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Aug 6, 2020
Total Return Perspectives: July 2020
Monetary stimulus continued to dominate in July, as both risk assets and Treasuries performed well. Despite the resurgence of Covid-19 and the expiration of enhanced unemployment benefits, the market remained stable due to ongoing support from the Federal Reserve.
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Jul 8, 2020
Steepening the (Adoption) Curve: Covid-19 and Digital Transformation
In the era of social distancing, technology has become even more integrated into our personal and professional lives. We believe this trend will persist even after the pandemic passes, and we expect it will particularly benefit firms that support remote working arrangements and eCommerce, two areas where we anticipate accelerating adoption and sustained growth.
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Jul 7, 2020
Press Release: Osterweis Total Return Fund Receives Five Star Morningstar Rating
The fund was rated over the past 3-years and overall against 289 funds in the nontraditional bond category, based on total returns as of May 31, 2020.
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Jul 6, 2020
Total Return Perspectives: June 2020
Fiscal and monetary stimulus have continued to provide stability to markets. Fundamental valuations seem to have decoupled from market levels as reopenings reverse and Covid-19 cases seem to be rising more rapidly.
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Jun 11, 2020
Weathering the Storm: Data Shows Consumers Are Holding Up Better Than Expected
According to Daniel Oh, remittance data for asset-backed securities suggests borrowers have embraced Covid-19 assistance programs, mitigating the initial impact of the downturn. However, if the recovery is slow he expects delinquencies and charge-offs to increase.
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Jun 2, 2020
Total Return Perspectives: May 2020
Fiscal and monetary stimulus have stabilized markets. Looking ahead we believe risk assets could continue to outperform Treasuries despite potentially weak economic data, largely due to Fed purchases.
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May 11, 2020
Webinar Replay - A Roadmap for Fixed Income Investing in a Pandemic Economy
If you were unable to join Eddy Vataru when he recapped the fixed income landscape since the 2008 financial crisis and outlined a framework for assessing the risks and opportunities within investment grade bonds in the current market environment, you can watch the replay here.
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May 5, 2020
Total Return Perspectives: April 2020
While fiscal and monetary stimulus have stabilized markets, we believe continued economic weakness will stunt the performance of risk assets.
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May 3, 2020
TD Ameritrade: Craig Manchuck Interview
Watch TD Ameritrade's interview with Craig Manchuck, Portfolio Manager of the Osterweis Strategic Income Fund, who discusses takeaways from market volatility levels.
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Mar 30, 2020
The Plumbing Clogged, but Do Not Throw Out the Baby With the Bath Water
According to John Sheehan, the recent selloff in Investment Grade fixed income was exacerbated by technical factors. In his view, regulatory changes implemented after the 2008 crisis removed a critical shock absorbing mechanism that caused spreads to spike.
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Mar 18, 2020
Gene Therapy: A Transformative Approach to Patient Care
Following decades of academic research and behind-the-scenes progress, gene therapy has emerged as one of the most promising fields in medicine. This revolutionary technology addresses the root causes of genetic disorders, creating not only better patient outcomes but also compelling investment opportunities.
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Mar 3, 2020
Press Release: Osterweis Total Return Fund Celebrates 3-Year Anniversary
The fund’s Sharpe Ratio is in the top 1% of its Core Fixed Income Lipper peer group.
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Mar 3, 2020
Lesson from Kraft Heinz Downgrade: Bondholders Beware
Kraft Heinz’s recent downgrade demonstrates that bondholders can no longer assume issuers are committed to maintaining their investment grade rating, and investors who are caught off guard will pay the price.
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Mar 2, 2020
Total Return Perspectives: February 2020
The Treasury rally intensified in February, driven by the global spread of the coronavirus.
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Feb 18, 2020
Webinar REPLAY - A Roadmap for Fixed Income Investing in a Low Rate Environment
If you were unable to join Eddy Vataru when he shared practical insights into developing an investment grade strategy that is flexible enough to handle today’s new realities, you can watch the replay here.
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Feb 6, 2020
Total Return Perspectives: January 2020
The 2019 Treasury rally continued into January as the Coronavirus spread through China and cases began to be reported globally.
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Jan 13, 2020
2020 Investment Grade Credit Outlook: Take a Scalpel, Not an Axe
2019 was an exceptional year for investment grade fixed income, but according to John Sheehan, the market is unlikely to repeat itself in 2020. He feels active portfolio management and effective credit selection will drive performance this year.
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Dec 17, 2019
Negative Rates in the U.S.? We Don’t Think So
Although trillions of dollars of global debt currently “pays” negative yields, according to Eddy Vataru, the size and supply/demand dynamics of the U.S. mortgage market will keep domestic rates positive for the foreseeable future.
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Oct 11, 2019
When Evaluating Venture-Backed Initial Public Offerings, Patience Is a Virtue
The venture capital industry has created a robust pipeline of new public companies, but in our view discipline is the key to finding the best opportunities.
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Aug 23, 2019
Aligned Incentives: Our Key to Navigating the Diverse High Yield Market
In our experience, family-owned private firms and small-to-medium sized public companies are most likely to borrow responsibly and prioritize bondholders ahead of other investors.
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Aug 13, 2019
Investment Grade Credit Report: An Impressive First Half
According to John Sheehan, accommodative Fed policy and favorable market technicals drove the investment grade credit market’s strong start to 2019.
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Jul 5, 2019
Convertible Bonds: An Underappreciated Source of Alpha
Although most investors ignore the opportunities presented by these flexible fixed income securities, they are an integral component of our strategy.
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Apr 16, 2019
Webinar REPLAY - Managing for Total Returns in an Uncertain Environment
If you were unable to join our webinar about Managing for Absolute Returns in an Uncertain Environment, hosted in partnership with AdvisorPerspectives, you can watch the replay here.
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Apr 15, 2019
A Contrarian View: Now Is Still the Time to Invest in Growth
In early November 2018 we published a blog post claiming that the time was right to invest in growth. In this piece, we revisit our analysis and draw the same conclusion.
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Mar 21, 2019
Don’t Believe the Hype: An Inverted Yield Curve Does Not Guarantee a Recession
Conventional wisdom dictates that recessions occur every time the yield curve inverts, but in our view that is an oversimplification.
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Mar 14, 2019
A New Paradigm for Stocks: Digital vs. Decline, Not Growth vs. Value
As the influence of technology continues to increase, we believe investors need to reconsider the relevance of both the traditional style matrix and sector classifications.
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Jan 15, 2019
Not as BBBad as You’ve Heard – Despite Negative Headlines, We Do Not Anticipate a Wave of Downgrades
BBB issuers have received a lot of bad press recently, but John Sheehan believes the perception is worse than the reality and that credit selection is key to finding good risk adjusted returns.
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Dec 10, 2018
U.S. Consumers Poised to Drive Demand in 2019: Which Companies Can Capitalize?
In his 2019 preview, Jim Callinan explains why he feels retail businesses are the likely engines for growth and shares his views on sectors and firms that should outperform.
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Nov 5, 2018
A Contrarian View: Now Is the Time to Invest in Growth
With the U.S. economy now in its ninth year of expansion, investors have become wary of growth stocks and their higher multiples. The ongoing market volatility has increased these concerns, but research from Cornerstone Macro suggests that a slowdown in the economy may in fact be favorable for growth companies.
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Oct 5, 2018
Leveraged Buyouts: Risks May Lurk Beneath the Surface of These Popular Deals
The recent Blackstone->Thomson Reuters acquisition reminded us once again why we need to be extra vigilant when evaluating sponsor backed deals.
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Oct 2, 2018
The Case for Concentrated Portfolios
When it comes to investing, we have always believed that focus is more important than breadth. In our latest paper, John Osterweis and Jim Callinan discuss the advantages of concentrated portfolios.
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Sep 5, 2018
Finding Growth in Unexpected Places: Cyclical Industries
Jim Callinan explores three firms from traditionally slow-growing cyclical industries that he believes are building businesses well-positioned to outperform the market.
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Jul 6, 2018
MedTech Disruptors: Combining Better Patient Outcomes with Direct-to-Consumer Marketing
Jim Callinan discusses how these three innovative MedTech firms are leveraging direct-to-consumer marketing to accelerate growth and disrupt their industry.
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